Recent figures released by the National Social Safety-Net Coordinating Office (NASSCO) further raise doubts about the adequacy of the social welfare plan proposed by the Tinubu-led administration.
According to NASSCO’s report, there are 15.7 million economically insecure households registered in the National Social Registry, which translates to over 60 million individuals facing economic hardship and deprivation.
Recall that President Bola Tinubu had unveiled a social welfare plan funded through an $800 million World Bank loan, to mitigate the hardships caused by the removal of fuel subsidies, and had proposed a monthly handout of N8, 000 ($10) to 12 million poor households for six months.
However, critics argue that the proposed plan inadequately addresses the magnitude of poverty, as it fails to recognize the full scale of poverty in the country and leaves a significant portion of the vulnerable population without any relief.
As of November 2022, there were approximately 130 million Nigerians representing 63 per cent of the country’s population facing multidimensional poverty, according to the National Bureau of Statistics and this figure is believed to have increased since the removal of fuel subsidies.
In the face of spiralling inflation and skyrocketing fuel prices which has affected the prices of commodities, the amount proposed for each household is also being widely criticised as grossly insufficient to meet their basic needs, let alone have any meaningful impact on their lives.
However, President Tinubu expressed optimism about the potential impact of the welfare initiative, stating, “It is expected that the program will stimulate economic activities in the informal sector and improve nutrition, health, education, and human capital development of beneficiaries’ households.”
But in reality, the escalating prices of goods and dwindling sales have compounded the financial struggles of ordinary citizens, making the proposed N8, 000 monthly stipend appear woefully insufficient to address their pressing needs.
Some of the major factors identified to be contributing to food insecurity in Nigeria include poverty, climate change, conflict and insecurity, increasing population, poor policy implementation, inefficient agricultural practices, post-harvest losses and low budgetary allocation to agriculture, among others.
The Chairman, Nigeria Labour Congress, Lagos chapter Funmi Sessi, said: “Looking at the money and the effect of the subsidy removal that has escalated the prices of everything in the market, I wonder what the N8,000 can do for a family in a month.
“I wonder what it can buy and the services it can render for 30 days; N8,000 cannot take care of a family for a week; it is not possible; it is going to be like a drop of water in the ocean”.
A viral video on Saturday showed some women in northern Nigeria chanting “Komi Yayi Sadar,” as they protested the high cost of living.
President Tinubu has declared a state of emergency on food security and directed that all matters pertaining to food and water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.
“We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items. Through this board, government will moderate spikes and dips in food prices,” the Nigerian government announced.
The move is seen as part of an aggressive push to boost agricultural productivity and reduce the high prices of major staple foods in Nigeria.
The development is in line with the government’s short, medium and long-term strategies towards addressing the challenges of food affordability and accessibility in the country.
President Tinubu has also called for a review of the N8,000 monthly handouts in response to public criticism of the initiative.